Customer Lifetime Value

Year Margin s(RR=0.9)

1 50 1
2 50 0.900
3 50 0.810
4 50 0.729
5 50 0.656
6 50 0.590
7 50 0.531
8 50 0.478
9 50 0.430
10 50 0.387
11 50 0.349
12 50 0.314
13 50 0.282
14 50 0.254
15 50 0.229
16 50 0.206
17 50 0.185
18 50 0.167
19 50 0.150
20 50 0.135
Customer Lifetime Value
Expected Margin Discount Rate 12% Present Value
50 1 50
45 0.892857142857143 40.1785714285714
40.5 0.79719387755102 32.2863520408163
36.45 0.711780247813411 25.9443900327988
32.805 0.635518078404831 20.8481705620705
29.5245 0.567426855718599 16.7529942016638
26.57205 0.506631121177321 13.4622274834798
23.914845 0.452349215336893 10.8178613706534
21.5233605 0.403883227979369 8.69292431570365
19.37102445 0.360610024981579 6.98538561083329
17.433922005 0.321973236590696 5.61325629441961
15.6905298045 0.287476104098836 4.51065237944433
14.12147682405 0.256675092945389 3.62463137633919
12.709329141645 0.229174190129812 2.91265021312971
11.4383962274805 0.204619812615903 2.34052249269351
10.2945566047325 0.182696261264199 1.88077700305729
9.26510094425921 0.163121661843035 1.51133866317104
8.33859084983329 0.145644340931281 1.21446856861958
7.50473176484996 0.130039590117215 0.975912242640735
6.75425858836496 0.116106776890371 0.784215194979162
 Normal Sum of 10 years 500
Expected Sum of 10 years 325.66077995
Net Present Value 225.96887705
 Exhibit 8

Total number of unique

guests
Average daily spend
Number of days average
guest stays
Average gross margin per
room
Average number of visits
per year per guest
Average marketing
expense per guest
Average new guest
acquisition expense
Total number of repeat
guests

of which: Total number of

multiproperty stay guests

Additional costs required

per annum
Discount rate
Average Guest Retention
Rate

CL

Year 2003
Number of Nights per Stay 2
Number of Stays per guest (assuming
1.2
they are retained)
Revenue Per Night $750.00
 Revenue per Customer $1,800.00
Gross Profit per Customer $576.00
Less Cost to Acquire Customer ($150.00)
Less Annual Marketing Cost per
$130.00
Customer
Cash Flow from Customer if
$150.00
Retained

Probability of Being Retained

Expected Cash Flow from Customer $150.00
Discount Factor

NPV of Expected Cash Flow from

($150.00)
Customer
Total NPV of CLTV $378.49

Year 2003
Number of Nights per Stay 2
Number of Stays per guest (assuming
1.3
they are retained)
Revenue Per Night $750.00
Revenue per Customer
Gross Profit per Customer
Less Cost to Acquire Customer ($150.00)
Less Annual Marketing Cost per
$130.00
Customer
Less Additional Marketing Cost per
Customerb
Cash Flow from Customer if
($150.00)
Retained

Probability of Being Retained

Expected Cash Flow from Customer ($150.00)

Discount Factor 1.000

NPV of Expected Cash Flow from

($150.00)
Customer
Total NPV of CLTV $461.10
 With Corporate
Without Branding (2003)
Branding

115,000 115,000

$750 $750

2 2

32% 32%

1.2 1.3

$130 $138.70

$150 $150

19,169 24,919

5,750 11,500

$10,00,000

8% 8%

16.67% 21.67%

CLTV Without Corporate Branding

2004 2005 2006

2 2 2

1.2 1.2 1.2

$795.00 $842.70 $893.26

$1,908.00 $2,022.48 $2,143.83
$610.56 $647.19 $686.03

$133.90 $137.92 $142.05

$476.66 $509.28 $543.97

1.00 0.1667 0.0278

$476.66 $84.90 $15.12
1.080 1.166 1.260

$441.35 $72.78 $12.00

CLTV With Corporate Branding

2004 2005 2006

2 2 2

1.3 1.3 1.3

$795.00 $842.70 $893.26

$2,067.00 $2,191.02 $2,322.48
$661.44 $701.13 $743.19

$133.90 $137.92 $142.05

$8.957 $9.23 $9.502

$518.58 $553.98 $591.64

1.0000 0.2167 0.0470

$518.58 $120.05 $27.78

1.080 1.166 1.260

$480.17 $102.92 $22.05

Expected Margin 240

2007 2008 2009

2 2 2

1.2 1.2 1.2

$946.86 $1,003.67 $1,063.89

$2,272.46 $2,408.81 $2,553.33
$727.19 $770.82 $817.07

$146.32 $150.71 $155.23

$580.87 $620.11 $661.84

0.0046 0.0008 0.0001

$2.69 $0.48 $0.09
1.360 1.469 1.587

$1.98 $0.33 $0.05

2007 2008 2009

2 2 2

1.3 1.3 1.3

$946.86 $1,003.67 $1,063.89

$2,461.83 $2,609.54 $2,766.11
$787.79 $835.05 $885.16

$146.32 $150.71 $155.23

$9.79 $10.081 $10.38

$631.68 $674.27 $719.55

0.0102 0.0022 0.0005

$6.43 $1.49 $0.34

1.360 1.469 1.587

$4.72 $1.01 $0.22

 Exhibit 5

2006 Actual
Revenue
Ad Sales $23,06,30,400
Affiliate Fees $8,00,00,000
Total Revenue

Expenses
Cost of Operations $7,00,00,000
Cost of Programming $5,50,00,000
Ad Sales Commissions $69,18,912
Marketing & Advertising $4,50,00,000
SGA $4,00,00,000
Total Expense $21,69,18,912
Net Income $9,37,11,488
Margin 30%

Exhibit 4 Ad Revenue Calcu

Ad Revenue Calculator
Current
TV HH $110,000,000.00
Average Rating 1.00%
Average Viewers (thousand) 1100
Average CPMa $2.00
Average Revenue/Ad Minute $2,200
Ad Minutes/Week 2,016
Weeks/Year 52
Ad Revenue/Year $23,06,30,400
Incremental Programming Expense 0
 Exhibit 5 TFC Estimated Financials for 2006 and 2007

2007 Base Scenario 1 Scenario 2

$20,75,67,360 $24,90,80,832 $32,28,82,560

$8,16,00,000 $8,16,00,000 $8,16,00,000

$7,21,00,000 $7,21,00,000 $7,21,00,000

$70,000,000 $75,000,000

$4,12,00,000 $4,12,00,000 $4,12,00,000

$11,33,00,000 $11,33,00,000 $11,33,00,000

Exhibit 4 Ad Revenue Calculator

2007 Base Scenario 1 Scenario 2

$110,000,000.00 $110,000,000.00 $110,000,000.00
1.00% 1.20% 0.80%
1100 1320 880.00
$1.80 $1.80 $3.50
1980 $2,376 $3,080
2,016 2,016 2,016
52 52 52
$207,567,360 $249,080,832 $322,882,560
0 0 15000000
6 and 2007

Scenario 3 Assumptions

$34,59,45,600 Insert scenario results from revenue calculator

$8,16,00,000 Grows 2% per year with population

$7,21,00,000 Grows 3% per year with inflation

Add incremental programming expense
3% of ad sales revenue
Reflects increased spending of $15M
$4,12,00,000 Growing with inflation 3%
$11,33,00,000

Scenario 3
$110,000,000.00 #VALUE!
1.20%
1320
$2.50
$3,300
2,016
52
$345,945,600
20000000